Investing In A Life Insurance Policy
If you are serious about your family and loved ones, then it is of utmost importance that you invest in a life insurance policy. Now that you know that you have to get life insurance because you know that your family will struggle financially if you are not there anymore, the time has come for you to get covered. In this article I will briefly explain how to get the sufficient cover for you and your loved ones.
The fist step in getting life insurance is to determent what your needs are. Do you need cover only for a specific time period, or would you rather want to be covered for life? It is important that you know that there are three types of life insurance policies available in South Africa. They are term life insurance, universal live cover and whole life insurance. It is important that you know that term life insurance will only give you cover for a specific amount of years, usually up to about 25 years. Whole life insurance will give cover up until the day that you die, and universal cover is almost the same as whole life cover, but with added investment properties. Whole and universal cover has the option where you can adjust the monthly premiums so that you pay more while you are younger, and as you get older your premiums will become lower.
Now that you have done your research on the different types of insurance, now is the time to establish how much cover is needed. You first need to decide who your beneficiaries should be and what financial support will they need. If you are only worried that they should be able to cover for your funeral costs then you should not be covered for less than R30 000. If you have young kids and you want to put them through school and tertiary education, then you have to be covered for a whole lot more.
Now that you have established what form of cover is needed and how much cover is needed, the next step is to decide on the optional benefits that might of good use to you. All of the insurance companies will ask you if you want additional benefits attached to your policy. They are usually cheap and might be worth the while. Some of the popular benefits are: Dread disease cover – This benefit will pay out if you have suffered a heart attack or a stroke etc, and will help cover the medical costs which are involved. Disability cover – This will pay out a lump some if you become permanently disabled. Accidental life cover – If you die in an accident then they will pay out more that the agreed amount to your beneficiaries. Ask your broker about all the different add-ons which you can add to your life insurance policy.
Now that you have answers for the above mentioned questions, now only should you start your shopping. I would suggest that you obtain quotes from the internet. It is the easiest and quickest way to obtain them. Compare them, and invest in the policy that suites you the best. You and your family will never regret the decisions that you have made.